Pipex sells residential broadband/voice division to TiscaliUK ISP Pipex Communications has entered into an agreement for the sale of its subsidiaries owning its consumer broadband and voice division to Tiscali for a total consideration of approximately GBP 210 million, on a debt-free basis, before adjustments. The corporate broadband customers will remain within the Pipex Group. The subsidiaries being sold to Tiscali are: Switch2 Telecoms, Pipex Homecall, Toucan Residential, Pipex Internet and Toucan Residential Ireland.
Pipex’s Broadband and Voice division reported revenues of GBP 231.7 million and profit before tax of GBP 13.9 million, excluding amortisation of goodwill and inter-company interest, in the year ended 31 December 2006. At that time, the division had approximately 570,000 broadband customers and 480,000 voice customers. The transaction, which constitutes a fundamental change of business for the purpose of the AIM rules, is conditional, inter alia, on shareholder approval and also competition clearance being received. The proceeds of the disposal will be placed on fiduciary deposit pending the directors’ consideration of its further application. Following the disposal of the Broadband and Voice division, the Group will consist of 3 divisions namely Web Hosting, Business Services and Pipex Wireless (WiMAX).
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